Indiana Car Insurance Rules and Regulations

Indiana car insurance rules and regulations are put into place to ensure that each motorist is compliant and that everyone who takes to the state roads is insured. The state of Indiana requires compliance from all drivers, either in the form of an insurance policy or through alternate means of demonstrating financial responsibility. Most motorists opt for an auto policy because the alternate options require more on hand cash than most of us can come up with. Liability, uninsured motorist, and underinsured motorist protection are all required for IN drivers. This article discusses the specifics of these requirements for state motorists.

Liability Insurance for IN Motorists

Every driver in the state of Indiana must be protected from liability circumstances. For the vast majority of us, that means buying an auto insurance policy with adequate liability protection. All auto owners must purchase their policies from insurers licensed to do business in the state. Any company selling insurance products in Indiana theoretically knows all the rules and requirements for insurance in state, but it is still good as motorists to get a quick primer on them as well. In fact, reviewing the minimums before you go to your insurer for a policy can help you avoid being oversold if your budget is particularly limited or if you do not wish to carry excess coverage beyond the minimum.

Liability insurance in the state comes in three parts. The three part split form auto liability insurance plan contains separate limits and deductibles for single accident liability for the following three areas: single victim bodily injury, multiple victim, bodily injury, and property damage. Bodily injury liability coverage protects the insured policy holder from direct financial responsibility for the medical costs and other related expenses stemming from injuries sustained by drivers and/or passengers you might have run into in an accident for which you are found liable. As an insured policy holder, in covered instances you are only responsible for paying the deductible for any area of coverage accesses, plus any excess costs that exceed the limits of your plan.

In Indiana, the minimum limits of liability protection for all drivers are $25,000 for single victim bodily injury, $50,000 for multiple victim bodily injury, and $10,000 for property damage [1]. These are the lowest levels of insurance protection a driver can carry on a policy in the state. Of course, it must be noted that these are only the minimums, and drivers are certainly encouraged to carry higher limits, especially on liability protection. If you can afford to insure yourself at a higher level, liability protection is a good area to invest more money into. Liability costs can sometimes far exceed these minimums in serious accident cases.

Indiana Uninsured/Underinsured Motorist Protection

In addition to liability auto insurance, IN drivers also must include uninsured and underinsured motorist coverage on their policies. Uninsured and underinsured coverage quite simply provides the coverage that none of us would need if every driver abided by the law and was adequately insured. Uninsured protection includes bodily injury and property damage coverage for the covered driver, passengers and vehicle. Underinsured protection required by the state only includes bodily injury protection.

The minimums for underinsured motorist coverage are the same as the state minimums for liability insurance. $25,000 in single victim and $50,000 in multiple victim bodily injury protection are mandated [1]. This coverage protects the driver and any passengers in the event you are struck by an uninsured driver or are the victim of a hit and run. Hit and run auto accidents are treated like uninsured motorist accidents by the victim's insurance company if the perpetrator is not apprehended.

Likewise, underinsured motorist coverage kicks in only in situations where the other driver in an accident is at fault and carries liability insurance but that insurance is insufficient to cover all of your expenses stemming from the accident. Again, only bodily injury coverage is required in this area.

Alternatives for Meeting IN Requirements

There are alternatives for motorists to come into compliance with Indiana auto insurance requirements. For those who do not wish to carry auto insurance, there are a few other ways to demonstrate financial responsibility aside from getting insured. They include getting a certificate of deposit on file with the state treasurer, holding a trust fund of sufficient value, and keeping a bond with a state certified bond surety company for the purpose of taking care of liability expenses in the wake of an at fault accident. But not many drivers have the financial means to select any of these options. The majority of drivers simply choose to carry auto insurance, because it does not require much upfront investment, and can be paid for in installments, unlike all the other options.